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Bo14172

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Bo14172

Re: None

Saturday, 08/07/2004 4:45:32 PM

Saturday, August 07, 2004 4:45:32 PM

Post# of 45560
Confirming Dr. D's post:

Pefect Storms, Arks, Mt Saint Helens...etc, etc, etc.
Tons, carats, grams, calcualtions, figures...
From Sterling's no O/S post to now his mega O/S post. Zen and Dr.D have people going into withdrawls if a daily post isn't logged. Tales and bedtime stories seem to calm the masses, which I guess helps keep the base. Whatever floats your boat I guess..lol

However, the only way slow sustained longterm support is keeping it real during good times and bad. Early last week had many silenced and no where to be found after a certain pr was released. Putting in focus wasn't a problem for me during that time.

Keeping it constructive to the issues at hand, with fresh DD on the market and the industry, along with perspective from 20+ years in business, law and investing is what I try to bring in order to "keep our feet on the ground while reaching for the stars".

I'm sure as many doubted the figures in Dr.D's recent post, as accepted his premise blindly. Those who doubted his figures
questioned the 2 most fundemental point of his post:

1) 0.5 carat/ton of kimberlite.

2) 1/2 mile diameter pipe will contain 1 billion tons of
kimberlite.

Here's why his post is both accurate and conservative in his projections.

In looking at the history of BHP, who were the pioneers in Canadian Diamond Exploration, we find this (I'll post the link, then an excerpt from the text):

Link:
http://ekati.bhpbilliton.com/news/28051998.asp

Excerpt from the text:

"Pipe Kimberlite Metres Drilled Est. Dry Tonnes Kimberlite Sampled Total Carats Recovered >1mm Sample Grade Carats/Tonne
Koala North 1075 201.7 126.58 0.63
Beartooth 1020 189.3 227.09 1.20

Commercial valuation of these samples was made in Antwerp in May. The average sample value of Koala North was $200 US per carat. Approximately 77 per cent of the value is due to three gem quality stones ranging in size from 3.26 to 5.41 carats. The average sample value for the Beartooth pipe was $79 US per carat. These figures are 10 per cent less than the average prices reported by dealers and valuers, which has been the joint venture's customary reporting practice when values are based on dealer sales prices.

Both of these pipes are relatively small, however, they are close to the mining area currently under development. The Koala North pipe is located within Koala Lake and has a surface area of approximately 0.6 hectares. The Beartooth kimberlite is situated 900 metres north of the Panda pipe and has a surface area of approximately 1.0 hectare. Reserve modeling is in progress on both pipes."
_________________________________________________________________

I apologize I couldn't copy the graph as it is illustrated in their site, but the key numbers I want you to focus on are easily seen.
Look at the Carats/Tonne figures for both sites: .63/tonne and 1.20/tonne. Why are these figures important?

1) Note what BHP states about these sites. They state both of
these pipes are "reletively small". Thus...

2) Dr. D's .5 carats/tonne is not only an accurate figure to
base his valuation model, it is indeed a conservative number!


Need further proof on the 1 billion tonnes of kimberlite?

Let's roll the clock ahead to what is happening in the area. Here is a quote from Shore Gold's site regarding the Star Diamond Project:

"The geophysical signature and early stage drilling have indicated a kimberlite body in the 500 million tonne range. Shore is currently undertaking a 25,000 tonne bulk sample to better determine carat values." http://www.shoregold.com/sdp.html
_________________________________________________________________

500 million tons in the Star Project alone. And how many claims and acres do we own or control? : )

Currently Shore is using a 14.5 meter diameter exploration shaft in their BULK MINING efforts. We are now drilling VERY close to the Star Project.

Let's now look at our other neighbor, Debeers/Kensington #122:

http://www.kensington-resources.com/s/Property.asp

* They estimate 9 billion tons of Kimberlite in their claims.

* Diamond recovery from Kimberlite 122 also was very positive
with stone abundances for the north and south part of the body
ranging from 2 to 7 times higher than historical results. A
total of 327 stones were recovered from 412.65 kg of
kimberlite including 6 macrodiamonds greater than 0.5 mm.
_________________________________________________________________

So, if there is 9 billion tons of kimberlite over the small acreage they own or control, I think it is safe to say we have at least that tonnage in over 100 anomalies and almost 2 million acres of claims!

Finally, note in BHP's information, Shore Gold's information, and
Debeer's/Kensington's information...ALL INVOLVE BULK SAMPLES!

Our test drilling will tell us if we can proceed to BULK SAMPLE STAGE. We are all 100% sure our future is very bright. But to believe we are going to pull out diamonds the size of river rocks during a small bore test drilling, is setting us up for what occured at Carolyn. However, what is exciting is the location of our new site in relation to Debeers and Shore Gold, and it is the first of many sites being explored from the guidance of the Goldak survey. This survey my friends is the key to our valuation at this point as much as our current drilling efforts. Both the survey and our finds offer many opportunties for CMKX to quickly become a major player in this area.

So in this case, read Dr.D's post knowing the base figures in his analysis are indeed conservative. :) Be well, Bo












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